Microsoft Agent 365 provides centralized governance of tools and Model Context Protocol (MCP) servers that AI agents use to access external services and organizational data.

Option D is correct because the Microsoft 365 admin center ' s Tools management interface enables administrators to block an individual MCP server without disabling the agent or unrelated MCP servers.

In this scenario, MCP2 is currently marked Available but has not completed its security review. Allowing agents to invoke MCP2 could expose procurement information before appropriate security controls have been validated.

Administrators can navigate to the Microsoft 365 admin center, select Agents → Tools → Registry, locate MCP2, and select Block.

Blocking MCP2 changes its availability and prevents agents from using the tools exposed by that server. MCP1 remains available because it is a separate MCP server, and Agent1 itself is not disabled.

Option A is incorrect because agent management rules do not provide the direct server-specific blocking action requested.

Option B is incorrect because the Agent Registry manages agents, whereas the Tools Registry provides MCP server controls.

Option C is incorrect because policy templates are not the direct mechanism for blocking an individual MCP server.

Therefore, blocking MCP2 from Tools satisfies the requirements.

Microsoft References:

https://learn.microsoft.com/en-us/microsoft-365/admin/manage/manage-plugins-skills-mcp-servers

https://learn.microsoft.com/en-us/microsoft-365/admin/manage/agent-tools-overview